Euro Futures: Rally has substance

The CME data shows the Open Interest (OI) in the Euro futures saw a big jump last week, signalling the bullish break in the common currency and the subsequent rally has got more legs. 

The OI jumped 6499 contracts. The total OI rose from 381,290 contracts on June 26 to 421,655 on June 30. During the same time period, the EUR/USD spot took out the key resistance of 1.1284 (161.8% Fib extension of Dec low - Jan high - Feb low) and rallied to a high of 1.1446 levels. 

The bullish breakout and a rise in the OI clearly suggest the rally has more substance. The only reason for caution is the fact that the daily RSI on the EUR/USD chart is now close to being overbought.